Research & Development vs. Iran's Exports

Although at present time trade can not be the engine of growth by itself but still can help developing countries a lot. A developing country can move from a non-efficient point to an optimum point in production through trade. That's why export of industry in each country depends on exchange rates, research and development and productivity. The main purpose of this study is the role of R & D activities in the export industry with ISIC two-digit codes. For this purpose, a statistical panel (9 Industrial Groups during 2008-1995) within a logarithmic multivariate econometric model was used. Besides R & D expenditure variable effects of variables such as real effective exchange rate, the value of each industry profitability, firm size and the amount of square workforce, the share of foreign raw materials on export volume is also investigated. The results of this Regression Model indicate that within the study period, the real & effective rate of exchange, the amount of each industry's profits, labor force, and firm size has positive impacts on exports and the share of foreign raw materials (unlike Vernon cycle) does not affect exports, and R & D costs with some three-break codes have positive effects in some codes & in some other they make no sense.